Third party motor insurance is a kind of insurance under which the insurance company agrees to indemnify the insured person if he is sued or held.

What is third party motor insurance in india. One is Third Party liability insurance which is just called liability insurance by insurance companies and the other one is first party insurance. Good news for private vehicle owners both 4- and 2-wheelers as IRDAI the insurance regulator has said that the existing third-party insurance premium rates for the year 2019-20 stand extended beyond March 31 2020 till further notice. NCB is not applicable to third party insurance.

In fact the beneficiary is a third party not. With a third party car insurance policy your insurance company will pay the third party on your behalf. The insured is one party the insurance company is the second party and the person the insured has injured and who is claiming damages is the third party.

Third Party Insurance in India In India under the provisions of the Motor Vehicles Act 1988 it is mandatory that every vehicle should have a valid Insurance to drive on the road. It is an inexpensive form of vehicle insurance. So the best thing is to avail at least a third-party insurance plan for your car.

Third-party car insurance shields the car owner against any losses that might incur due to any bodily injury the demise of a. Those who get to benefit from this type of insurance are neither the insurance provider nor the policyholder. This is motor insurance that needs to be taken for any private car owned by an individual and is mandated by the Government of India.

Similarly it is not applicable on add-ons as well. In the Indian context automobile dealers arrange for a comprehensive insurance cover along with vehicle registration. It also covers any damages and injuries caused to the third party.

This is a compulsory form of motor insurance that every vehicle owner must-have. Hike in 3rd party motor cover premium put on hold. Third-party insurance is a form of liability insurance in which the insured purchases a policy for protection against the claim of a third party.